New Delhi, Nov 5 (PTI) Infrastructure major Larsen & Toubro (L&T) on Tuesday said it will acquire 21% stake in E2E Networks Ltd, a cloud services company, for Rs 1,407.02 crore.

The move assumes significant importance as it will increase L&T’s reach in cloud services and AI – the key growth areas in the technology sector.

“The company has entered into an investment agreement on November 5, 2024 to acquire up to 21% stake in E2E Networks Ltd,” L&T said in a regulatory filing.

L&T will make an investment of Rs 1,079.27 crore for a 15 per cent stake through preferential allotment and Rs 327.75 crore for an additional six per cent stake through secondary acquisition, the filing said.

The acquisition of the stake in E2E Networks is likely to be completed by December 31.

L&T will not acquire control in E2E Networks and will be a minority shareholder with certain protective rights.

“The acquisition is complementary to the market approach in the fast-growing areas of artificial intelligence and cloud services. Along with the acquisition, the company also proposes to enter into a software license agreement, a reseller agreement and a co-location agreement with E2E Networks,” in the filing . said.

Delhi-based E2E Networks Ltd is an Indian cloud company that provides public cloud services to its customers.